IA slams Treasury proposal to exclude raw data from ESG ratings regulation

'Gap in the regulation'

The Investment Association (IA) has warned of a "gap in the regulation of the data chain" if ESG data providers are excused from regulatory oversight, as proposed by the Treasury's consultation on regulating ESG ratings providers, which closed on Friday (30 June).

The government launched the consultation on ESG ratings providers at the end of March as part of its Green Finance Strategy. While the Treasury is overseeing the new legislation, it will be regulated by the FCA and the PRA. Meanwhile, in a presentation at Investment Week's Sustainable Investment Festival earlier this month, the FCA's Mark Manning revealed the draft code of conduct for ESG data and ratings agencies is due for imminent release, Work on the code began last November as a "kick-start" for progress towards the Treasury's consultation. Climate Change Committee warns UK has '...